South Jahra Labour City

Country :
Client Name :
Kuwait Authority for Partnership Projects (KAPP)
Type :
Scope :
Transaction Advisory
Location :
South Jahra, Kuwait
Completion Date :
Construction Value(US$) :

Kuwait Authority for Partnership Projects (KAPP) and Kuwait Municipality (KM) have embarked on a path to involve the private sector in the design, finance, construction, operation and maintenance of labor cities, to provide adequate and affordable housing for the growing expat population.

In its efforts to bridge the housing gap, Kuwait Municipality has selected the South Jahra area to develop a new labor city, South Jahra Labour City, to accommodate around 20,000 low-wage male bachelors and improve their living conditions.

The City of approximately 1,015,000 sqm will consist of four integrated components:

  1. Residential Development
  2. Commercial and Neighborhood Services
  3. Landmarks and Community Services
  4. Municipal and Utilities Services.

 The term of the PPP agreement with Kuwait Municipality will be 40 years including a 3-year construction period. The Project will incorporate all aspects of security, health, and entertainment while preserving the cultures and traditions of this considerable category in the Kuwaiti society. The key objectives set by KM are:

  • Addressing the housing shortage for expat workers
  • Improving the living conditions of low income expat workers
  • Rehabilitating Kuwaiti neighborhoods in and around current labor districts
  • Enhancing safety and security standards in labor neighborhoods
  • Providing a compound for large Kuwaiti employers to accommodate their employees
  • Transferring operation and maintenance responsibilities to the private sector.

Egis and Projacs provided Transaction Advisor Services for South Jahra Labor City Project as:

  • Providing a comprehensive definition of the requirements for the Project
  • Identifying and promoting the Project to interested private sector investors, and supporting in marketing and Public Relations activities related to the Project
  • Designing and undertaking a competitive process for procurement including a pre-qualification process to establish a short list of suitably qualified investors; defining evaluation criteria to be used for the tender process; issuing a RFP to short listed invertors; and evaluating proposals received and recommending selection of a suitable investor for negotiations
  • Providing support to KAPP/KM in negotiations with the Preferred Bidder
  • Supporting in incorporating a public joint-stock company that will serve as the Special Purpose Vehicle
  • Supporting the Authorities in reaching financial close successfully.

The project was executed by the consortium of Egis, Projacs, Rodl and Gowlings.